Shutterstock photo* Dollar eases vs yen, down from post-US jobs data highs
* Traders eye suspected Japan cronyism scandal
* Any worries about policy uncertainty may dampen riskappetite (Updates prices, adds comments)
SINGAPORE, March 12 (Reuters) - The dollar eased versus theyen on Monday, as traders worried that a suspected cronyismscandal in Japan involving the sale of state-owned land coulddampen investors' risk appetites.
The name of Japanese Prime Minister Shinzo Abe's wife wasremoved from documents regarding the suspected cronyism scandal,media said on Monday, as pressure mounted on the premier and hisally Finance Minister Taro Aso over a possible cover-up. urn:newsml:reuters.com:*:nL3N1QU05E
Abe has repeatedly denied he or his wife did favours forschool operator Moritomo Gakuen, which bought the land inquestion, and has said he would resign if evidence were foundthat they had.
The prime minister had hoped to put the issue of the sale ofstate-owned land at a huge discount to the school operator withties to his wife behind him, but it has gathered steam with aseries of fresh revelations.
Market participants said the political developments in Japanhelped temper gains in Japanese equities and lent some supportto the yen, which tends to rise in times of economicuncertainty.
Japan's Nikkei share average .N225 was last up 1.4percent, after rising 2.3 percent earlier on Monday.
"The yen could strengthen if this leads to uncertainty overeconomic policies," said Satoshi Okagawa, senior global marketsanalyst for Sumitomo Mitsui Banking Corporation in Singapore.
Such concerns appeared to be limiting gains in Tokyo shares,although it seemed a bit premature to factor in such risks,Okagawa added.
The dollar eased 0.2 percent to 106.62 yenJPY= , edgingaway from a one-week high of 107.05 yen set on Friday followingnews of higher-than-expected U.S. jobs growth in February.
The strong U.S. job growth data was counterbalanced byslower increases in wages, resulting in money market traderssticking to bets that the Fed would raise interest rates threetimes this year, with only around a one-in-four chance seen fora fourth rate hike in 2018. urn:newsml:reuters.com:*:nS0N1NQ00W
The dollar had risen against the yen last week as riskappetite improved on hopes for a breakthrough in the standoffover North Korea's nuclear weapons programme.
The greenback also gained ground against the yen last week as fears of a global trade war receded.
U.S President Donald Trump imposed import tariffs on steeland aluminium, while softening his stance by announcingexemptions for Canada and Mexico, and leaving open the chancefor other countries to obtain their own. urn:newsml:reuters.com:*:nL4N1QQ1M8
While downside pressure on the dollar against the yen hasshown signs of abating recently, any dollar gains would probablybe limited for now, said Shinichiro Kadota, senior FX strategistfor Barclays in Tokyo.
"Over the past several weeks the dollar has been trading ina range of around 105 yen to 108 yen. In the near term, it seemsunlikely that there will be a break out of this range," he said.
Reasons to buy the dollar appear limited for now, givenfactors such as lingering uncertainty over U.S. trade policy,Kadota added.
The euro edged up 0.1 percent to $1.2322EUR= , but wasstill some ways below a near three-week high of $1.2447 set onWednesday.
The common currency has retreated after EuropeanCentral Bank President Mario Draghi said on Thursday thatregional inflation remained subdued and rising protectionism wasa risk. urn:newsml:reuters.com:*:nL5N1QP5OP (Reporting by Masayuki KitanoEditing by Eric Meijer and Kim Coghill) ((masayuki.kitano@thomsonreuters.com; +65-6417-4682; ReutersMessaging: masayuki.kitano.thomsonreuters.com@reuters.net))
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